Your Microphone is not working, if you are using Windows XP/Windows 2000 then double click theh Speaker Icon in Task Bar. There you select the properties and then the recording option. You will get the Microphone setting. Unmute there.
If your problem is still there you can tell me the problem you are facing then you can tell me the errors you are getting.

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Let me know if the internal microphone works fine while not on Google chat. Do send me a picture of Sound icon and then I can check and see what can be done.
To access Sound icon you may follow the below steps:

(1)Right click on Speaker icon on the status bar.
(2)Select Recording devices.
(3)Now send me a picture of this screen.

If the person cannot hear you then, either your microphonedriver not installed or not working OR the microphone is not configured inSkype.To test your microphone then click on Start - All Programs - Accessories -Entertainment - Sound recorder. Then record your voice and then play it back.If this is OK then the microphone need to be configured in Skype.To configure the microphone - Open Skype - Tools - Options -Audio Settings for the Microphone THEN click on Save.

You may have to disable the onboard microphone to use the connected hardware.Realtek is very picky, same goes with speakers connected to the back and front at the same time, no sound. Disable the one you are not using.

Hi queen17186...
Go to the bottom right hand side of your computer screen, look for the speaker icon, double click the speaker icon, a window will open and show you the volume control, make sure none of those are checked "mute".
Then go to the top of that window left hand side and click on "options"then click "properties" scroll down and make sure "microphone" is not checked.
This should clear your microphone problem.
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Firs of all I like to remind you the model that you have doesn't come with integrated microphone. However It will work any standard PC microphone that you can obtain around few dollars or less from IT stores. All you need to plug the microphone to the right side second socket socket as illustrated below

If issue persist please post further I will provide assistance accordingly